Does GST Have to Be Included in the Price? Australian Pricing Rules Explained

If you are selling to consumers in Australia, yes. Section 48 of the Australian Consumer Law (ACL) requires you to show a single total price that includes GST and all mandatory charges. That price must be at least as prominent as any "ex GST" or component figure you display alongside it.

If you are selling exclusively to other businesses, you can quote ex-GST, but you must label it clearly. Get it wrong and the ACCC can take enforcement action. Air Asia was fined $200,000 by the Federal Court for getting it wrong for just 10 months.

At a Glance

• Consumer-facing prices must include GST as a single total figure (Section 48 ACL).
• The GST-inclusive price must be at least as prominent as any "ex GST" amount.
• B2B pricing can be ex-GST if clearly labelled and communicated exclusively to commercial buyers.
• Drip pricing (adding mandatory fees late in checkout) breaches the ACL.
• Pricing penalties are not covered by standard business insurance. Getting your pricing right is a risk management priority.

The Single Price Rule (Section 48 ACL)

When you advertise, display, or quote a price to a consumer, you must show the single price. This is the total amount the customer will pay, including GST and any other mandatory, quantifiable charges.

The single price must be displayed as one figure and must be at least as prominent as any component price. You cannot show "$300 + GST" alone to a consumer. You can show "$300 + $30 GST = $330" - but only if the $330 total is at least as prominent as the $300 figure.

This rule applies everywhere: your website, social media, shelf labels, menus, signage, checkout screens, quotes, and advertising across all mediums.

Two other ACL provisions reinforce this. Section 18 prohibits misleading or deceptive conduct. Section 29 prohibits false or misleading representations about price. If your pricing could lead a reasonable customer to believe they will pay less than the actual total, you risk breaching all three.

When Can You Show Prices Without GST?

How to Display Prices Correctly

Consumer website or social media ad: Show the total price including GST. If you want to show the breakdown, format it as: "$300 + $30 GST = $330 total" with the total at least as prominent as the component.

B2B quote or proposal: "Subtotal: $5,000 + GST ($500) = $5,500 total." Clearly state "+ GST" or "ex GST" on the document. Both the ex-GST and total should be visible.

E-commerce / Shopify checkout: Prices on product pages must be GST-inclusive for Australian consumers. Do not show ex-GST prices on product pages and then add GST only at checkout. This is drip pricing and it breaches the ACL.

Menu or in-store signage: Show the GST-inclusive price. If a surcharge applies on certain days (public holidays, weekends), display "a surcharge of [X%] applies on [specified days]" at least as prominently as the most prominent price on the menu.

The B2B Exception

You can quote prices without GST when the pricing is communicated exclusively to commercial buyers. This means password-protected wholesale portals, direct contract negotiations, trade-only price lists, or private B2B invoicing. The key word is "exclusively." If the same price appears on a public-facing website, social media post, or advertisement that consumers can see, the B2B exception does not apply.

When in doubt, show both the ex-GST and GST-inclusive amounts, with the total prominent. It costs nothing to be clear and protects you from an ACCC complaint.

For more on how GST applies to quotes and proposals specifically, see upcover's guide on specifying GST on a quote.

What If You Are Not Registered for GST?

If your annual turnover is under $75,000 and you are not registered for GST, do not add GST to your prices or invoices. Your invoice should not show a GST line and should not be labelled "Tax Invoice." You cannot claim GST input tax credits on your BAS.

If your turnover exceeds $75,000, you must register for GST within 21 days. For a full walkthrough, see upcover's guide on when to register for GST.

Looking for GST on overseas purchases? That is a separate topic. Australia's low-value import rules mean GST applies to most imported goods and services regardless of value. If you are GST-registered, you can claim input tax credits for business purchases through your BAS.

Drip Pricing and the Air Asia Case

Drip pricing is when mandatory fees are added late in the purchase process, after the initial price is displayed. A product page shows $200, but by checkout a "booking fee," "service charge," or GST has pushed the total to $240. The customer only sees the real price after they have committed.

The ACCC actively pursues drip pricing as misleading conduct under Section 18 of the ACL. If a charge is mandatory and quantifiable at the time of advertising, it must be included in the single price from the start. Optional extras (like express shipping or gift wrapping) can be added later with clear disclosure.

The Air Asia penalty: The Federal Court fined Air Asia $200,000 after the airline failed to display airfare prices inclusive of all taxes, duties, fees, and mandatory charges on its website for a period of 10 months. The airline breached the single pricing provisions of the ACL. That penalty was imposed in 2012. For conduct on or after 28 March 2026, many ACL penalties for corporations can be the greater of $100 million, three times the benefit obtained, or 30% of adjusted turnover during the breach turnover period. For conduct before that date, different penalty caps may apply.

Why Pricing Errors Are Not Covered by Insurance

If the ACCC takes action against your business for misleading pricing, or a customer lodges a complaint, the resulting penalties and legal costs are generally not covered by standard business insurance policies. Most policies exclude statutory penalties, regulatory fines, and claims arising from intentional or negligent misrepresentation of prices.

This means you cannot insure your way out of a pricing compliance failure. Getting your pricing layout right is a risk management priority, not an insurance claim.

upcover arranges business insurance for Australian small businesses, but the best protection against pricing penalties is accurate, GST-inclusive pricing from the start.

FAQ

Does GST have to be included in the advertised price in Australia?

Yes. Section 48 of the Australian Consumer Law requires consumer-facing prices to include GST as a single total figure. The GST-inclusive price must be at least as prominent as any component price. This applies to websites, signage, social media, menus, and all advertising.

Is it legal to quote prices without GST in Australia?

It depends on who you are quoting. If you are quoting to a consumer, the total GST-inclusive price must be shown before they accept. If you are quoting exclusively to another business (B2B), you can show ex-GST pricing as long as it is clearly labelled.

Can I show ex-GST pricing on my website?

Only if the GST-inclusive total is also shown and is at least as prominent as the ex-GST figure. If your website is consumer-facing, the default displayed price should be GST-inclusive. Showing only an ex-GST price to consumers breaches Section 48 of the ACL.

What is the single price rule under Australian Consumer Law?

The single price rule (Section 48 ACL) requires that when you represent a price to consumers, you must include the total price as a single figure. This total must include GST, taxes, duties, and all mandatory quantifiable charges. It must be displayed at least as prominently as any component amount.

Do I need to include GST when selling to another business?

Not necessarily. The B2B exception allows ex-GST pricing when the price is communicated exclusively to commercial buyers through trade-only channels. But if the price appears anywhere a consumer could see it (public website, social media, general advertising), the single price rule applies.

What are the penalties for not including GST in the displayed price?

The ACCC can take enforcement action under Sections 18, 29, and 48 of the ACL. Penalties can be significant. Air Asia was fined $200,000 by the Federal Court for failing to display GST-inclusive airfare prices for 10 months. Penalties apply to both individuals and corporations.

‍

_{The information in this article is general in nature and provided for informational purposes only. It does not constitute legal or tax advice. References to the Australian Consumer Law (Sections 18, 29, and 48 of the Competition and Consumer Act 2010), ACCC enforcement actions, and the Air Asia Federal Court penalty are based on publicly available information current at the time of writing. Always confirm specific pricing obligations with the ACCC, your state consumer protection authority, or a qualified legal professional. upcover Pty Ltd ABN 17 628 197 437 is a Corporate Authorised Representative (CAR 1299211) of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078. upcover arranges insurance products with selected insurers and underwriters and does not compare all general insurers or insurance products available in the market.}